Change your Debt Management Company
If you are having problems with your Debt Management Plan service provider this can be very frustrating. You may not be satisfied with the service you are getting for a number of reasons. Perhaps interest and charges continue to be added by one or more of your creditors. Maybe you are making your payments on time each month but are still getting hassle from your creditors. It is possible that you have taken additional debts during your Plan but your current provider is reluctant to include these into the agreement. Whatever the reason you are not happy one option available to you is to change your service provider completely.
- Can you change your Debt Management Company
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Can you change your Debt Management Company?
When you use a service provider to manage a Debt Management Plan you are not tied into a legal contract with them. This is the case whether you are using a fee charging provider or a free service. For this reason you can simply stop using the service at any time and for any reason. There can be no objection by your provider and certainly no cancellation fee.
The only thing you have to remember is to cancel the standing order payment you have set up with the Debt Management Company.
Of course you need to remember that your creditors will start chasing you for money again if they do not receive the payments they are expecting. To avoid this you need to decide how you will continue to manage your debts moving forward well in advance.
DM4U Tip: You may decide to move to another debt management service provider. If so make sure that they will not charge a fee for taking on your case. Most reputable debt management companies will provide a hand over service for free.
Can you start managing your Debt Management Plan yourself?
There is no reason why you should not stop using a debt management service provider and manage your Plan yourself. You will have received information from your previous service provider about how much each creditor should receive each month. As such simply continuing to make these payments on your own should not be a problem.
If you decide to manage your own Plan you need to remember that you will now have to make a payment to each of your creditors every month rather than a single payment to the service provider. This will require you to be organised and will be more time consuming. Given this managing the plan yourself is only a good idea if you are very organised or if you only have a few creditors.
You will also need to remember to regularly review your financial situation. Your creditors will expect an update about your circumstances every 6-12 months.
Is it possible to pay off problem Debts early
If you are using a Debt Management service provider they will normally be able to reach a reduced payment agreement with the majority of your creditors. However you may find that just one or two simply will not agree. These may be continuing to harass you and may keep adding interest to your account.
In this situation there is nothing to stop you trying to repay these problem creditors early. You might be able to do this if you are able to save a little of your income each month perhaps from a bonus or overtime payment. This cash can then be used to pay off or settle the problem debt.
DM4U Tip: Your debt management service provider might suggest that paying off one creditor early will cause problems. The others in your Plan may feel that they have been treated unfairly. However normally paying one creditor early will cause very little issue. It will also result in the remaining creditors getting a larger slice of your available monthly money meaning that their debts are paid faster as well.
Should you consider using an Alternative Debt Solution?
If your Debt Management Plan is not working for you for some reason this is always a good time to review your options and consider whether an alternative debt solution might be better. It is possible that at the time you started your Plan the alternative options were not fully explained to you. You may therefore find a different solution is far better suited to your situation.
Alternatively you may have considered different debt solutions before you started your Plan. At that time they may not have been suitable. However your financial circumstances may now have changed or the criteria for using other solutions may have relaxed. A better solution could now be available to you. It is certainly worth researching this to find out.
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